tax implications of using identity other than your own.
 

already having an old party ccount i cannot immediately take advantage of rakeback under my own identity.

a number of affiliates recommend using a family member or friend's identity when creating a new account and this is what many players have resorted to in order to get properly signed up at party.

a question i have regarding this practice is are there any important tax implications that i should be aware of.

if i am passing $100k+ through someone else's identity, could this complicate tax issues for both parties involved?

any information is much appreciated.

Re: tax implications of using identity other than your own.
 

You will both definatly have tax 'issues'. You will want to discuss this with a professional.

Re: tax implications of using identity other than your own.
 

You will also have 'fraud' issues

Re: tax implications of using identity other than your own.
 

I feel sure there will be hundreds if not thousands of wives/girlfriends out there filing as a professional gambler just for this reason.

Re: tax implications of using identity other than your own.
 

Ask a CPA. What you'll get here is mostly conjecture.

Re: tax implications of using identity other than your own.
 

If you use your wife's identity and file jointly anyway, I don't see the problem.

However, using your brothers', your mom's, or a buddy's is going to be a sticky situation.

Re: tax implications of using identity other than your own.
 

just transfer from family members neteller to yours.

and i hope you burn in hell for attempting to defraud poker rooms.

Re: tax implications of using identity other than your own.
 

I don't plan to pay any taxes on *****... I've actually never even though hard about this (i definitely am not in the $100K range that previous poster just threw out there however)... am I in the minority or majority of forum readers planning to do this?

Re: tax implications of using identity other than your own.
 

[ QUOTE ]
I don't plan to pay any taxes on *****...

[/ QUOTE ]

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Tony: "F**k you, f**k you mang, I'm not going back into the cage, OK? No way! I've been there..."

[/ QUOTE ]

Re: tax implications of using identity other than your own.
 

[ QUOTE ]
a question i have regarding this practice is are there any important tax implications that i should be aware of.

[/ QUOTE ]

As long as you are paying taxes on your poker winnings, there should not be any problems. You have constructive control over the "foreign" accounts.

It is worth noting that, if at any time during the year, you have more 10K combined under your control in foreign assets (that would be Neteller+all Poker rooms + anything else), that you are required to file a disclosure document!

The possible penalties for not filing the disclosure are as severe as not paying your taxes.

You should reveiew your financial situation with a qualified tax advisor!

Re: tax implications of using identity other than your own.
 

[ QUOTE ]
[ QUOTE ]
a question i have regarding this practice is are there any important tax implications that i should be aware of.

[/ QUOTE ]

As long as you are paying taxes on your poker winnings, there should not be any problems. You have constructive control over the "foreign" accounts.

It is worth noting that, if at any time during the year, you have more 10K combined under your control in foreign assets (that would be Neteller+all Poker rooms + anything else), that you are required to file a disclosure document!

The possible penalties for not filing the disclosure are as severe as not paying your taxes.

You should reveiew your financial situation with a qualified tax advisor!

[/ QUOTE ]

Good to know. Thanks for the info.

Re: tax implications of using identity other than your own.
 

[ QUOTE ]


As long as you are paying taxes on your poker winnings, there should not be any problems. You have constructive control over the "foreign" accounts.


[/ QUOTE ]

This sounds much more accurate to me. I hate it when people give opinions as "factual" advice or information by saying, "This WILL create a problem". Wouldn't it by better to say, "This MIGHT create a problem" unless you actually had a clue ?

If you did things above board and properly you wouldn't think that there should be a problem.

You play on your friends account. Any winnings you chose to withdrawl are transferred from their Neteller account to yours. You then withdrawl funds to your bank account. You declare your winnings and pay your taxes. How could doing this cause either of you tax issues ? What . . . the government is going to have a clue that your friend has an on-line poker and Neteller account ?. If there are no large random deposits on their B&M bank account why and how would anyone from the IRS ever think to look into or ask about it ?

On the miniscule chance that it was actually questioned of your friend, you could always give your friend a signed letter at tax time every year that states that any and all revenue earned at XXXX Poker site in xxx person's name has been declared by you for tax purposes.

I'm not a CPA but from a purely logical point of view doesn't that make sense ?

busguy

Re: tax implications of using identity other than your own.
 

Standard disclaimers. IANAL.

I don't see any real difference between using someone else's poker account and any of the following:

1. Staking deals.

2. Placing bets on someone else's behalf.

3. Buying a lottery ticket for a group of people who split the jackpot.

In each case the gambling is being done in one person's name but other people have all or part of the action.

The general rule is that tax liability/benefit goes to the one who is actually winning or losing money, not the middleman who is handling it.

But you need proof!! The IRS has a reputation for being very difficult about this for the good reason that many frauds are committed in this area.

I think there is also a reporting form that the nominal recipient of the winnings is supposed to fill out, at least in some cases such as lottery tickets. Essentially it says who really won the money. Investigate if you are interested.

[ QUOTE ]
On the miniscule chance that it was actually questioned of your friend, you could always give your friend a signed letter at tax time every year that states that any and all revenue earned at XXXX Poker site in xxx person's name has been declared by you for tax purposes.

[/ QUOTE ]
Wrong way to do this. The IRS doesn't like stuff that's done after the fact of winning money. Execute a written contract in advance saying whose money it is and who is gambling. Preferably get it notarized. Now you have solid evidence in case the IRS shows up.

Re: tax implications of using identity other than your own.
 

Also use a different computer!

Re: tax implications of using identity other than your own.
 

i started playing underage with my moms neteller account linked to a joint bank account. i have since taken her name off the bank account, but still use her neteller account. if the IRS asks i will tell them the truth....